In this articleLYV your favorite stocksCREATE FREE ACCOUNTSource: Getty Images Nation CEO Michael Rapino and Smith Entertainment Group CEO Ryan Smith said this week that events are more central than ever to culture and commerce in a post-pandemic world.Speaking at CNBC Sport and Boardroom's Game Plan conference on Tuesday, the executives said that the high demand for in-person events has been unmistakable."No matter what you bring to that table that day, you unite around that one d experience," Rapino said.
"For those two hours, I tend to drop whatever baggage I have and have a d moment."According to Goldman Sachs, the music industry is expected to grow at a 7.2% compounded annual rate through 2030, fueled by millennials and Generation Z.Smith bought the NBA's Utah Jazz in 2020 and launched a new NHL franchise in the state in 2024."In sports, we're really media companies," Smith said.
"We've got talent, we've got distribution.
We're putting on a show or a wedding or something every night."Get the CNBC Sport directly to your inboxThe CNBC Sport with Alex Sherman brings you the biggest news and exclusive interviews from the worlds of sports and media, dered weekly to your inbox.
here to get access today.Rapino also emphasized how the economics of music have shifted.
With ing revenue dwarfed by touring income, shows have become a primary source of revenue for artists."The artist is going to make 98% of their money from the show," he said.
"We just did Beyonce's tour. She's got 62 transport trucks outside.
That's a Super Bowl she's putting on every night."Despite headlines rising ticket prices, Rapino argued that concerts are still underpriced compared to sporting events."In sports, I joke it's a badge of honor to spend [$70,000] for Knicks courtside," Rapino said.
"When you read the ticket prices going up, it's still an average concert price [of] $72.
Try going to a Laker game for that, and there's 80 of them [in a season]."The cost of admission for movies, theaters and concerts rose 3.4% in August from a year earlier, according to the Bureau of Labor Statistics' consumer price index data, outpacing the full index's increase of 2.9%.
Meanwhile, the cost of admission for sporting events last month fell 0.5%, compared to the same time last year.Ryan Smith attends a media opportunity prior to the premier game for the Utah Hockey at Delta Center in Salt Lake City on Oct.
8, 2024.Bruce Bennett | Getty Images Sport | Getty ImagesLooking ahead, both executives are betting heavily on Salt Lake City as a growth market.
Smith and Rapino are partnering on a new downtown entertainment district in the Utah city anchored by sports and music venues.The plan is to eventually host 100 to 200 nights of events a year, from NBA and NHL games to major concerts."If we do our job, that's bably a million people coming downtown," Smith said.
"The impact it has on a city and es is almost indescribable."Rapino also said nology, including AI-driven ticketing, could make buying tickets smoother."Most websites are going to be challenged in the future, as you're going to use that chatbot," Rapino said.
"We think ticketing, and how you find that ticket and how you can get that ticket, needs to be imved."Don’t miss these insights from CNBC Nobel winner Joseph Stiglitz has a warning for bond investorsAs traditional 60/40 portfolios get riskier, BlackRock says investors should rethink their allocationsGoldman adds Walmart to September 'conviction list.' Here's who else made the cutNvidia retail buyers are getting exhausted